1. When does the negotiation begin?

Many people confuse negotiation and social encounter. As soon as two parties are communicating and at least one of them wants something from the other, a negotiation has commenced. This has implications for the manner in which you deal with people, particularly for the first time. Remember that perception is all. If the other party has, from previous encounters with you, formed the opinion that you are insignificant, stupid or rude then they will be in enhanced power position when you are trying to convince them to give you something. Maintaining good relations contributes to your power position and may even get you near the even point. When you contact someone you have dealt with before, you are merely continuing a negotiation in a new phase.

Whether you are dealing with a new phase or a brand new negotiation, the start point is the first contact. This could be a telephone call from you to the other party, perhaps simply trying to organise a time and place to meet. You must be ready to move immediately into full-on negotiation at this point. Have your position fully prepared (see Part 1), the other party may want to negotiate immediately rather than wait for a physical meting. Negotiation gets serious as soon as one party decides it is. If you are not ready to engage at this point, you may lower you power position drastically.

If the other party is happy to arrange a meeting to discuss the proposal, you should give them some idea of what you want to talk about. The sales technique of stating that you have some vague "opportunity" you wish to discuss arouses suspicion and does not constitute good negotiation. It also unsubtly informs the other party that they are about to endure a sales pitch. Balance is the key, you need to tell the other party enough to interest them but still have enough in reserve to counter any doubts they have.

2. Who gets to talk first?

In formal debating, the first speaker defines the terms. This is also true of negotiation. Aim to get to your proposition as soon as possible. Having said that, remember firstly to be polite and secondly to make sure that the other party is aware of the advantages of your proposal. An extreme of the second consideration is the sales technique used by some telephone salespeople who ring you up and proceed through a lengthy spiel before they get to the part where they tell you how much they want you to pay. This method is very irritating and makes many people suspicious, particularly if they are unable to convince the salesperson to get to the point. If you have your position clear in your head before you start and are able to state it clearly and concisely, you can avoid this extreme.

The advantage of politely taking control of the conversation is that you get to state the position and they get to respond, you then have the opportunity to respond to their response. The situation is similar to the advantage that a tennis player has when they serve. On the other hand, any potential advantage would be lost were you to talk over the other party. Remember, stay polite!

3. How much chat is too much?

The answer to this question depends on the situation. Some people like to have a lengthy chat while others to get to the point quickly. You need to make a judgement in each individual case. Be prepared for both. It's a bad idea to interrupt someone telling their favourite anecdote, no matter how boring you may find it. On the other hand, embarrassing silences and fidgeting indicate that you should already have got to the point.

4. Talk to the boss

You can't negotiate with someone who does not have the power to make a deal. Always try to talk to the person who can make the decision. The old expression is: "Talk to the organ grinder not the monkey" and there is a lot of truth to it. Unfortunately this is not always possible and you would almost certainly do yourself no good by quoting this saying to an underling! The difficulty of dealing with a subordinate is that they then have to convey your arguments to someone else. A "Chinese whispers" effect can occur and your carefully prepared position may get to the ear of the decision maker in a garbled version. Dealing with subordinates who have limited power also makes the back and forth aspect of negotiating extremely cumbersome.

5. Get it in writing

Another old expression is that a verbal contract is not worth the paper its printed on. Legally this may not be strictly true but a written contract certainly goes a long way to avoiding later arguments about what was agreed to. If someone claims that they are to be trusted and fully intend to honour the deal but are not prepared to put it in writing, you should at least ask yourself why. One way to short-circuit this reticence is to come prepared with a simple contract stating the basis of the agreement. This need not be a complicated legal document but simply a record of your agreement. Adjustments can be made and initialled as the negotiation proceeds. This will also help focus the negotiation.

6. What about contracts?

If the negotiation involves a contract that the other party wants you to sign make sure that you understand it before you sign. Some music industry lawyers will tell you that the contract is "industry standard", remember that in the music industry the standard deal varies from bad to appalling. Seek as much information as you can - the Musicians' Union is usually helpful in this area. Don't underestimate your own ability to comprehend a contract. With time and effort nearly everyone can get to the point where they at least know what questions they want to ask. If the other party tells you that a clause means one thing but the wording of the contract doesn't make it clear, ask them to change it. If they won't, it's a pretty strong indication that what they are offering is what's written in the contract and not what has been said.

Make sure you really understand the implications of every clause. Thinking up an actual situation and applying the contract to it in your mind is a useful exercise. Get an understanding of the contract as a whole, individual clauses may imply one thing but when read with other clauses the meaning can change drastically. It is never wise to sign a document you don't completely understand.

Most music industry contracts contain three types of clauses:
(a) The "...gosh, how did that get in here, I must talk to the office staff" type.

These are usually truly appalling clauses and you wont have much trouble getting them removed. They constitute a very dangerous trap for those who don't examine the contract carefully.

(b) The "we really don't want to change this but we can talk about it" type.

These are susceptible to alteration or removal but you will have to use your recently acquired negotiation skills.

(c) The "forget it" type.

These constitute the other party's "bottom line" and you almost certainly won't be able to have them removed or altered.

And finally, three golden rules when dealing with contracts:

• A contract presented to you on a "take it or leave it" basis is not a negotiation.
• A contract that you "must sign today or the deal's off" is suspicious.
• Never underestimate the unfairness that can appear in a contract.

7. To sum up

Every negotiation is different. The ideas in these articles are only a guide and will not all be relevant in every case. The principles of Preparation, Logic and Manners are probably universal. If you can't live with the end result of a negotiation, don't agree. If you don't have a point in your mind at which you will walk away from the negotiation, then you haven't thought the situation through far enough and you are in a weak position.

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